1. Monkey See! Monkey Do…. Monkey Do…. The Collapse of a Hurricane Claim Webcast

2. Proper Preparation Precedes Powerful Performance Clowning around with America's largest monkey farm. And guess who slipped on the banana peels?

3. DUTIES OF THE INSURED IN EVENT OF LOSS General Conditions – Claims Activated Obligations General Conditions – Claims Activated Obligations Your Duties in Event of Loss: Your Duties in Event of Loss: “As often as we (the carrier) reasonably require” “As often as we (the carrier) reasonably require” Item c: Item c: 1)Show us the damaged property; 2)Provide us with the records and documents we request and permit us to make copies; and 3)Submit to examinations under oath while not in the presence of any other named insureds and sign the same. Item d: Send to us, within sixty (60) days after our request, your signed, sworn proof of loss (a legal document typically unknown to most insureds) which sets forth, to the best of your knowledge and belief: Item d: Send to us, within sixty (60) days after our request, your signed, sworn proof of loss (a legal document typically unknown to most insureds) which sets forth, to the best of your knowledge and belief: 1)The time and cause of loss; 2)Your interest and that of all others in the Covered Property involved, and all liens on the Covered Property; 3)Other insurance which may cover the loss; 4)Changes in title or occupancy of the Covered Property during the term of the policy; 5)Specifications of damaged buildings and detailed repair estimates; 6)The inventory of damaged and undamaged personal property described in policy

4. AGENT NO SHOW! AGENT NO SHOW! CAN YOU IMAGINE NOT SEEING OR MEETING WITH YOUR AGENT AT RENEWAL? FOR NINE CONSECUTIVE YEARS!! Agent's adequate analysis of insured? Insured's honest and reasonable state of mind? Does the insured have a clue of what the claim process will bring?

5. DISCOVERY POLICY PEEL Adjusting discovers faulty property schedule design = Agent Adjusting discovers faulty property schedule design = Agent Adjusting uncovers underwriting errors / vacancies = Agent Adjusting uncovers underwriting errors / vacancies = Agent Adjusting unveils lack of professional competence = Agent Adjusting unveils lack of professional competence = Agent Adjusting may expose you to professional liability = Agent Adjusting may expose you to professional liability = Agent

6. CLAIM INTERRUPTED Imagine the underwriting black hole on this policy Imagine the underwriting black hole on this policy Displaying the inept fiduciary conduct of insured Displaying the inept fiduciary conduct of insured Comprehend the vast agent liability there could be Comprehend the vast agent liability there could be And then the claim hits – and everyone scatters? And then the claim hits – and everyone scatters?

7. “Shaking the tree” The claim investigation begins. WHERE WAS THIS POLICY PRODUCED? Role of your Agent / Broker Role of your Underwriter Role of your Executive Review – accuracy, updates, values WHO PRODUCED THIS MANUSCRIPT? Does it square with your notes and coverage needs? Who is documenting Best Practices of this risk placement? Do you have backup communications (emails, boards notes, phone calls) made to agent / broker to validate policy designs?

8. GIVE ME ALL YOUR BANANAS Adjuster discovers coverage defects in policy construction Adjuster discovers coverage defects in policy construction Adjuster enlightens insured to erroneous property valuations Adjuster enlightens insured to erroneous property valuations Adjuster appraises coinsurance calculations / penalties Adjuster appraises coinsurance calculations / penalties Adjuster relays new relevant risk info to carrier – exposes fraud Adjuster relays new relevant risk info to carrier – exposes fraud Adjuster does not answer to the agent – just claims department Adjuster does not answer to the agent – just claims department

9. DESIGN x DETAILS = SUCCESS DIGITAL DOCUMENTATION OF BUILDING CONDITIONS DIGITAL DOCUMENTATION OF BUILDING CONDITIONS PRE-HURRICANE SEASON – CRITICAL FOR CLAIMS. PRE-HURRICANE SEASON – CRITICAL FOR CLAIMS. MATCHING BUILDING VALUES AND LOCATIONS. MATCHING BUILDING VALUES AND LOCATIONS. COINSURANCE PERCENTAGE AND PENALTIES. COINSURANCE PERCENTAGE AND PENALTIES. DIGITAL STORAGE OFF-SITE OF NEEDED RECORDS – WITH AGENTS, CONTRACTORS, LEGAL TEAM. DIGITAL STORAGE OFF-SITE OF NEEDED RECORDS – WITH AGENTS, CONTRACTORS, LEGAL TEAM. MARSHALL & SWIFT REPLACEMENT COST VALUATIONS. MARSHALL & SWIFT REPLACEMENT COST VALUATIONS. WHAT DEDUCTIBLE PLAN DID YOU BUY? WHAT DEDUCTIBLE PLAN DID YOU BUY?

10. COINSURANCE PENALTY EXPLAINED F. Additional Conditions The following conditions apply in addition to the Common Policy Conditions and the Commercial Property Conditions. 1.Coinsurance If a Coinsurance percentage is shown in the Declarations, the following condition applies. a. We will not pay the full amount of any loss if the value of Covered Property at the time of loss times the Coinsurance percentage shown for it in the Declarations is greater than the Limit of Insurance for the property. Instead, we will determine the most we will pay using the following steps: Multiply the value of Covered Property at the time of loss by the Coinsurance percentage; Divide the Limit of Insurance of the property by the figure determined in Step (1); Multiply the total amount of loss, before the application of any deductible, by the figure determined in Step (2); and Subtract the deductible from the figure determined in Step (3). Calculus or Algebraic formulas do not apply – ONLY correct policy design and building valuations. Copyright, Insurance Services Office, Inc.

11. AND THIS IS HOW THE FINE PRINT COULD WORK OUT Example No. 1 (Underinsurance): When: Value of Property is$ 250,000 Coinsurance is 80% Purchased Limit is$ 100,000 The Deductible is 250 The amount of loss is$ 40,000 Step (1): $250,000 x 80% = $200,000 (this is the minimum amount of insurance limit required by contract to meet your Coinsurance requirements) Step (2): $100,000 / $200,000 =.50 Step (3): $ 40,000 x.50 = $ 20,000 Step (4): $ 20,000 - $250 = $ 19,750 We will pay no more than $ 19,750. The remaining $ 20,250 is not covered. Example No. 2 (Adequate Insurance): When: Value of Property is$ 250,000 Coinsurance is 80% Purchased Limit is$ 200,000 The Deductible is 250 The amount of loss is $ 40,000 The minimum amount of insurance to meet your Coinsurance requirement is $200,000 ($250,000 x 80%). Therefore, the Limit of Insurance in this Example is adequate and no penalty applies. We will pay no more than $ 39,750 ($40,000 amount of loss minus the deductible of $250). Copyright, Insurance Services Office, Inc.

12. The Monkey Claim Died Insured was not prepared – and perished Insured’s documents not ready for claims Insured’s directors & officers not in control Erroneous building schedule / multiple deductibles applied Fiduciary exposure is expanded Insured had no idea of what resources and strategies the carrier would bring to the loss investigation – but they had warning!

13. The Monkey Farm Family Directors & Officers? Directors & Officers? Maintenance Records? Maintenance Records? Financial Records? Financial Records? What Assets Used for Claim? What Assets Used for Claim? Who and What were they? Who and What were they? Inadequate experience for this event and its demands – you bet! Inadequate experience for this event and its demands – you bet! Insurance Agent is tainted. Insurance Agent is tainted. With each “issue” there may be corresponding liability exposures that increase with each error or omission. With each “attempt” to react to the large loss claim – a fiduciary event no one was prepared for - a successful claims settlement derails. Uncertainty swells! Liabilities expand and peak.

14. Duties of the Insured Examination Under Oath (EUO) Proof of Loss – a requirement Proof of Loss – a requirement Appraisal – Coverages & Damages Appraisal – Coverages & Damages Are you as an agent capable of helping the insured prepare to navigate these time sensitive zones in the claims process?

15. A Snapshot of How They Prepare P I L R “Property Insurance Loss Register” What is it? How is it used? How does the carrier use this against your claim?

16. Plan for Recovery This Policy May be Your Biggest Asset. This Policy May be Your Biggest Asset. A large loss claim event may be the biggest corporate viability challenge you have faced. A large loss claim event may be the biggest corporate viability challenge you have faced. Know the strategies and tools of the carrier’s claims adjusting process – know how they come to play. Know the strategies and tools of the carrier’s claims adjusting process – know how they come to play. Equip your professional advisors ahead of time – no reactive magic has been found. Equip your professional advisors ahead of time – no reactive magic has been found. Court’s Response – Your failure to plan does not make for their emergency! Court’s Response – Your failure to plan does not make for their emergency!

17. Coverage Rewards or Regrets? Florida Property Insurance Reform – 2011 Senate Bill 408 ACV – depreciated settlement amount paid first (hopefully within 90-days undisputed) RCV – remaining difference of total loss settlement paid when work to restore or replace is actually completed.

18. Unauthorized Entities Updated Verbiage: An entity that is required to be licensed or registered with the Florida Office of Insurance Regulation but is operating without the proper authorization is identified as an unauthorized insurer. All persons have the responsibility of conducting reasonable research to ensure they are not writing policies or placing business with an unauthorized insurer. Any person who, directly or indirectly, aid or represent an unauthorized insurer can lose their licenses or face other disciplinary sanctions. Please see section 626.901, Florida Statutes, to read the laws. Lack of careful screening can result in significant financial loss to Florida consumers due to unpaid claims and/or theft of premiums. Under Florida law, a person can be charged with a third-degree felony and also held liable for any unpaid claims and refund of premiums when representing an unauthorized insurer. It is the person’s responsibility to give fair and accurate information regarding the companies they represent.